£31.1 billion in lost pension pots – make sure employees aren’t missing out

The problem of lost pension pots is growing – there are now an estimated 3.3 million lost pensions containing £31.1 billion worth of assets, according to research from the Pensions Policy Institute. This is up from an estimated 2.8million pots worth around £26 billion two years ago.

It’s easy to lose track of a pension – we move jobs and homes and contact details get lost along the way. Even though auto-enrolment is great at making sure we get a pension with every job, the risk is that they go astray. Especially because pensions can’t normally be accessed until age 55 (57 from 2028), so it’s likely they could fall to the back of our minds.

And with the average size of a lost pot the highest among the 55-75 age group at £13,620, it could mean employees are missing out on a huge chunk of retirement savings. So it’s vital that we continue to push the message of checking for lost pensions whenever we can.

To help, we’ve put together some tips to share with employees on where to start.

1. Check old paperwork

Make a list of everywhere you’ve worked during your career so far and check to see if you have pension paperwork for all of them.

2. Contact old colleagues

If you can’t find any old paperwork, you could talk to any old colleagues to see whether they kept any pension paperwork. If you’re no longer in touch, LinkedIn can be a really useful place to find them. You can also speak to old employers and ask them to confirm their pension scheme at the time of your employment.

3. Try the pension tracing service

If you’re still struggling to find details for an old pension, contact the government’s tracing service. You’ll need the name of the company you worked for, the name of the pension scheme, or the name of the pension provider. The service won’t tell you how much is in the pension, but it will help you find contact details.

4. Keep on top of it from now on

Whenever you move home, it’s worth adding pension providers to the list of people you need to notify so they have up to date information for you. That way you won’t miss out on important communications.

5. Avoid losing track again

Once you’ve tracked down old pensions, you may wish to consolidate them. It will give you a better idea of what you have and make managing your pension easier. However, before you do you should check you aren’t incurring any exit fees or missing out on valuable benefits or guarantees. It’s also worth noting that it rarely makes sense to transfer a defined benefit pension.

This article is not personal advice. If you are unsure of a course of action, please ask about advice.

We offer a workplace savings platform that caters for employees at every life stage. This includes easy access to a Group SIPP and payroll-enabled ISA and Fund and Share Account, all fully supported by our tailored financial wellbeing programmes. We also offer Active Savings (cash deposits), a Lifetime ISA and Junior ISAs, all accessed via our user-friendly app.

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